Telecom companies looking to boost free cash flow as sector improves: Fitch Ratings
Live MintFitch Ratings has said the Indian telecom sector is improving on the back of rational competition and moderating capex, and that it expects telecom companies to now focus on profitability and 5G monetisation to boost free cash flow. The American rating firm forecast that Ebitda for Bharti Airtel and Reliance Jio would grow by around 10% in 2025, driven by an about 8% increase in monthly average revenue per user due to higher data consumption. "We expect Bharti Airtel Limited’s leverage to continue to improve, driven by tariff hikes and lower 5G-related capex," the agency said. Capex expected to decline Fitch forecast that capex as a proportion of total revenue would continue to decline for Bharti and Jio as a significant portion of their investments into 5G have already taken place.